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Nifty Open Interest Put Call ratio fell to 0.94 from 0.96 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE NIFTY & BANK NIFTY FUTURES

CREATE SHORT POSITION WITH THE STOP LOSS OF 18100 LEVELS

* Nifty Future’s ended on a flat note and closed lower by 47 points to close at 18022.95.

* Short build up is seen in the Nifty Futures where Open Interest rose by 3% with Nifty falling by 0.3%.

* Short build up is also seen in the Bank Nifty Futures where Open Interest rose by 4% with Bank Nifty falling by 1%.

* Nifty Open Interest Put Call ratio fell to 0.94 from 0.96 levels. Amongst the Nifty options (11-Nov Expiry), Call writing is seen at 18100 levels, Indicating Nifty is likely to find resistance in the vicinity of 18100 - 18200 levels. On the lower side, an immediate support is seen in the vicinity of 17900 - 18000 levels where we have seen Puts writing.

* Short build up is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 512 Cr with their Open Interest going up by 3048 contracts.

To Sum It up, Short build up in the Nifty futures, short build up in the Bank Nifty Futures, Call writing at 18100 levels and Short build by FII’s in Index and Stock future segment Indicates that one should be cautious for the markets.

Therefore, our advise is to Create short position on rally with the stop loss of 18100 levels. On the Lower side 17900-17800 levels will act as a strong support.

In the Bank Nifty, our advice is to go short with trailing SL of 39300 levels. On the lower side 38900-38600 level may act as support going forward.

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